Zurich sweetens bid for speciality insurer Beazley to $10.2bn

Core Viewpoint - Zurich Insurance Group has increased its buyout offer for Beazley to $10.2 billion, reflecting a significant premium over previous offers and market prices [1][2]. Group 1: Offer Details - The revised proposal entitles Beazley shareholders to receive 1,280p in cash per share, up from the initial offer of 1,230p [1]. - The latest offer represents a 56% premium over Beazley's closing price of 820p on January 16 and a 32% premium over its highest-ever share price of 973p in June 2025 [2]. Group 2: Strategic Rationale - Zurich believes the new cash proposal provides "immediate and certain cash value" and is superior to what Beazley could achieve independently in a reasonable timeframe [3]. - If the transaction proceeds, the combined entity would have approximately $15 billion in gross written premiums and be headquartered in the UK [3]. Group 3: Funding and Future Outlook - The acquisition will be funded through existing cash reserves, new debt arrangements, and an equity placing [4]. - Zurich anticipates that the acquisition will be accretive to its financial performance targets for 2027 [4]. Group 4: Business Expansion - Zurich has established a Global Specialty Unit, focusing on expanding its specialty insurance business, which wrote around $9 billion in premiums in 2024 [5].